January 6, 1992
TO: STATE SECURITIES MEMBERS NO. 2-92
RE: CORRECTION - SOUTH DAKOTA SECURITIES DIVISION POSITION ON
RULE 144A SECURITIES
__________________________________________________________
The Institute previously advised you that securities
eligible for resale pursuant to Rule 144A of the Securities Act
of 1933 would be excluded from the definition of "restricted
securities" for purposes of the investment restriction of ARSD
20:08:04:30. (See Memorandum to State Securities Members No. 54-
91, dated December 11, 1991.) However, please be advised that
the South Dakota Securities Division has not taken the position
that such securities will be excluded from the definition of
"restricted securities". On a case-by-case basis, the South
Dakota Securities Division may grant waivers from the
requirements of ARSD 20:08:04:39 to permit a fund to invest more
than ten percent of its assets in Rule 144A securities.
Patricia Louie
Assistant General Counsel